Jump to content

Recommended Posts

Haven't seen any mentions of it, but did the green building on the corner that was renovated (500 Milam) ever find a tenant?

 

Yes and no.  The people who re-did it did not find tenants.  But they did sell it.  It was purchased by the Episcopal Health Foundation.  They plan to move their offices into the upper floors (may have already moved in).

 

The first floor and mezzanine have been leased to Christ Church Cathedral. It will house the Hines Center for Spirituality and Prayer.

  • Like 3
Link to comment
Share on other sites

Yes and no.  The people who re-did it did not find tenants.  But they did sell it.  It was purchased by the Episcopal Health Foundation.  They plan to move their offices into the upper floors (may have already moved in).

 

The first floor and mezzanine have been leased to Christ Church Cathedral. It will house the Hines Center for Spirituality and Prayer.

 

I have nothing against prayer (in fact I'm all for it), but if ground floor space is being leased to a prayer center, either that is one lucrative prayer center or one weak leasing market. Probably the latter.

  • Like 1
Link to comment
Share on other sites

I have nothing against prayer (in fact I'm all for it), but if ground floor space is being leased to a prayer center, either that is one lucrative prayer center or one weak leasing market. Probably the latter.

 

Well, Christ Church is right across the street...

Link to comment
Share on other sites

Well, Christ Church is right across the street...

 

That doesn't really affect the economics of ground floor retail space. For a normal retail rent, the tenant needs a certain amount of revenue from retail sales in order to provide a reasonable profit after subtracting rent, operating expenses, overhead. Prayer obviously doesn't bring in any money (at least not directly), so for ground floor retail space to be used as a prayer center, the rent must be much lower than the rent you can get from, say, a sub shop or café or pizzeria.

 

The church I suppose has some motivation to pay for a space close to their campus, but typically I think you'd put your prayer center in an upper floor where rent is cheaper and there is more solitude anyway. (Aside: isn't the "prayer center" traditionally the church itself?) This seems like it was just there for the taking at a bargain basement rate, sort of like the Good Will center or City Annex offices where there used to be a grocery store at your local shopping center.

 

tl;dr - Institutional users in retail spaces does not indicate a healthy retail market. Hopefully when downtown's population doubles in a few years we stop seeing this.

Edited by H-Town Man
Link to comment
Share on other sites

That doesn't really affect the economics of ground floor retail space. For a normal retail rent, the tenant needs a certain amount of revenue from retail sales in order to provide a reasonable profit after subtracting rent, operating expenses, overhead. Prayer obviously doesn't bring in any money (at least not directly), so for ground floor retail space to be used as a prayer center, the rent must be much lower than the rent you can get from, say, a sub shop or café or pizzeria.

 

The church I suppose has some motivation to pay for a space close to their campus, but typically I think you'd put your prayer center in an upper floor where rent is cheaper and there is more solitude anyway. (Aside: isn't the "prayer center" traditionally the church itself?) This seems like it was just there for the taking at a bargain basement rate, sort of like the Good Will center or City Annex offices where there used to be a grocery store at your local shopping center.

 

tl;dr - Institutional users in retail spaces does not indicate a healthy retail market. Hopefully when downtown's population doubles in a few years we stop seeing this.

 

It is hardly news to anyone that the downtown street level retail market is not particularly strong. 

 

Having said that, this particular transaction tells us literally nothing about the "market."  The landlord is a nonprofit foundation.  The tenant is a closely-related nonprofit entity.

 

And, FWIW, the church indeed wanted street-level, street-front space for this facility.  They very specifically did not want it hidden away in the upper levels of the large church complex.  They want a very visible outreach to and engagement with the downtown community, especially the thousands of new residents coming soon.

 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
×
×
  • Create New...